Before the turn of the century the groundwater resource in the Taipei Basin was rich and the water table was even higher than the ground surface. Due to the development of Taipei City, extensive pumping to supply water for the city caused the groundwater pressure drawdown and resulted in excessive ground subsidence. The groundwater table recovered as the pumping activities were restricted in 1960's. This paper provides information on the recovery of groundwater and discusses its effects on the underground construction in the Taipei Basin. Successful dewatering in the Taipei Rapid Transit System Project provides good experience for future design.